According to Classical Management Theory, employees have just financial and physical requirements, while social and job-satisfaction demands either don't exist or aren't essential. To that end, this school promotes high specialization, centralization, and profit maximization." (www.businessdictionary.com) Classical Management Theory controlled management thinking in the 1920s and 1930s by emphasizing the efficiency of the labour process. Management theory comprises three schools. The two types of management are bureaucratic and administrative. (www.lehren.org) In this essay, the three schools of thought in Classical Management Theory and assess their relevance to work and organizations today.
Frederick Taylor created scientific Management. Taylor's strategy was to boost organizational productivity by improving production efficiency via empirical study. Especially in the United States, where labour, especially skilled labour, was scarce at the turn of the century, worker efficiency was the only option to increase production. According to Scientific Management, each worker should have a clearly defined task and follow specified processes and procedures for each job. (Lehren, 2004) Taylor's management theory posits that managers are cognitively superior to normal employees and have a positive obligation to supervise and organize their job activities. So his hypothesis was only applied to low-level repetitious jobs that supervisors could readily handle.
Taylor's Scientific Management theory has four tenets. The first concept is to establish the optimum technique for each activity. The second premise is that managers should choose and train the best individual for the job. The third point is that managers must ensure that the best individual uses the best methodology for the task. Taylor's last concept was that Management should be accountable for the work approach and employees solely for the actual job performance. (Cole, 2004)
Taylor's management method is based on factory time studies. With time research, Taylor devised the finest and fastest techniques to accomplish each component. He also sought to get firms to pay more productive workers more. Scientific Management Theory gained popularity in the early twentieth century as its implementation improved production and efficiency.
Max Weber is modern sociology's father. He coined the word 'bureaucracy' to represent a superior organizational model. His ideal organization was bureaucratic, with clearly defined roles and objectives. He thought that he should evaluate performance only on merit and prioritize technical proficiency. • A clear line of command within a specified hierarchy where the top post holders have the authority and right to control lesser post holders; Specialization and division of labour, where each person has the authority and knowledge to complete a certain task; Written rules and regulations that regulate all choices, actions, and circumstances; Relationships between employees and supervisors that are impersonal, with clear obligations and rights; And all selection, recruiting, and promotion choices will be based on technical expertise. Weber's paradigm for Bureaucratic Management aided the establishment of large firms like Ford. (Lehren, 2004)
Henri Fayol, a French businessman, established one of the Classical Management theories known as 'Administrative Management. The goal of Scientific Management was to increase shop floor productivity, whereas Fayol's theory arose out of the necessity to manage complex organizations like factories. Fayol was among the first to recognize the talents and principles of good Management. According to Cole (2004), Fayol thought that good Management follows certain patterns that can study. Thus he concentrated on business operations management, which he felt had been ignored. His managerial expertise led him to formulate 14 broad management concepts. Before Fayol, people thought managers were born, not created. He felt that Management could be taught and mastered once he recognized the basic ideas.
The Classical Theorists' concepts still have numerous applicability in modern Management, with some adjustments. Managers now encounter several internal issues comparable to managers in the past. Managers like Taylor want to boost worker productivity. The Scientific Management philosophy is still applicable today but not as popular. For example, fast-food businesses like KFC and McDonald's and car assembly lines employ the job design is offered. They operate a deep fryer or cooking operation, managing and assigning workers to complete the duties. Modern mass automotive assembly lines produce completed goods faster than Taylor dreamed. Moreover, it employed scientific Management efficiency methodologies in surgeon training.
Armees nowadays use Scientific Management. The contemporary military employs all but monetary incentives to improve productivity. In armies, wage incentives are generally skill bonuses. Today's industrial engineers are also taught Scientific Management methodologies such as job-task analysis, time and motion analyses, and thorough production planning. Backer
Bureaucratic Management is still practiced in the US by libraries. Wichita State University's libraries are one illustration of Weber's Bureaucratic Management concepts in action. The USPS still uses bureaucracy. (www.biz.colostate.edu)
Mauritius' manufacturing and apparel sectors rely on piece-rate systems and mass production. Classical Management Theories are still used in the seafood business, notably at a tuna processing company in Mauritius. (www.biz.colostate.edu)
Although developed classical Management Theories in the nineteenth century, the economic environment has swiftly altered. Nowadays' businesses aren't self- They are now open systems constantly interacting with the surroundings. Today's corporate climate is very competitive worldwide, and managers are more conscious of its implications.
The internal and external corporate environments are distinct. The internal environment is one of the factors that the organization may regulate—employees, employers, customers, suppliers, interest groups, and authorities. The external environment includes circumstances that are beyond the control of the organization.
Today's business climate is marked by change and innovation. Globally, environmental concerns have developed. Climate change, pollution, ozone depletion, population, and food security are current natural problems. It's getting harder due to the financial turmoil and global economic slump. Businesses must change or die. Managers nowadays must consider scientific facts and the environment, and public opinion.
Today's organizations are heavily impacted by external factors (constant technological development, globalization, strong market share rivalry, attracting and keeping frontline employees and executives). However, Classical Management Theories only show an organization free of external pressures. Classical Management Theories are slowly slipping away because they place individuals and their needs second to the needs of an organization. Human Resource Management now poses a severe threat to the scientific method. Also, in organizations, the matrix form is quickly replacing bureaucratic Management. Classical Management Theories are still essential since they presented management concepts for intellectual examination and supplied ideas that later management schools of thought developed.
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